Through the Korea-CABEI Partnership Single Donor Trust Fund (KTF), CABEI will carry out the studies for the development of the Pacific Train Project in El Salvador
CABEI will support the Government of El Salvador through a non-reimbursable Technical Cooperation for $ 450,000 to determine the viability of developing the country's rail network for cargo and passengers, including the Pacific Train Project.
Tegucigalpa, Honduras, January 6 2021- The Central American Bank for Economic Integration (CABEI) announced today that it will be executing a non-reimbursable Technical Cooperation for $450,000, which was recently approved by the Republic of Korea within the framework of the Korea-CABEI Partnership Single Donor Trust Fund (KTF), and its purpose is to support the Government of El Salvador in determining the viability of the development of the country's rail network for cargo and passengers, including the Pacific Train Project.
Through the Technical Cooperation that will be executed by CABEI, the analysis of the demand for rail cargo and passenger service within the country will be carried out, the recommendations of technologies and alternatives for a proposed railroad network and systems to connect identified segments within the country will be provided, and the respective economic-financial, legal and regulatory analyzes will be conducted that will allow the structuring of a Public-Private Partnership. Also, the socio-environmental management and evaluation plans will be prepared and the institutional capacity of the entities in charge of the country's railway system will be strengthened which will also consider the transfer of knowledge from the railway sector of South Korean origin.
The acting Executive President of CABEI, Mr. Jaime Diaz mentioned that, “the participation of the Bank as the implementing entity of this important non-reimbursable Technical Cooperation granted within the framework of the Korea-CABEI Partnership Single Donor Trust Fund is one more step towards to the consolidation of relations between CABEI, the countries of the Central American region and the Republic of Korea, which will undoubtedly continue to bring many benefits to the countries of our region”.
Likewise, Mr. Diaz stated that the Technical Cooperation will contribute to promote the economic and commercial transformation of El Salvador, to improve trade flows and ground transport safety, to reduce road congestion as well as to reduce greenhouse gas emissions to mitigate the impact of climate change in El Salvador.
The execution of the Technical Cooperation is expected to begin during the 1st quarter of 2021.